SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Politics : Formerly About Advanced Micro Devices
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Kevin K. Spurway who wrote (28755)2/24/1998 1:02:00 PM
From: Reginald Middleton  Read Replies (1) of 1572778
 
<You're changing the assumptions of the question. Either Company A has the ability to generate $100 of discounted future cash flow, OR it can sell its assets, open a new fab, and generate a different stream of cash flows. If you allow company A to sell its assets, you're changing the assumptions of the question>

Nothing has changed. Assets are assets. They have value, therefore they can be monetized. Both companies have $100 of discounted cash flows, it is just that one also has 2 billion dollars of assets on hand as well. Two billion is two billion, no matter how you look at it. This is the reason why you have to include assets in the valuation of a company. Notice how it does not seem different when the two companies are gold mining companies. Instead of trying to guess what mgmt could do with the assets they should be marked to market and added to the value of the entity.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News